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Starbucks Case

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1. Analyze the challenges Starbucks faced in entering the Indian Market
Political factors
The political factors have strong influence on regulation and the control of business, also the spending power of consumers and other businesses. We must consider those factors as important depending on the political system of the country we are operating in and the political condition of the country as a whole.
The Indian economy has been subject to some positive economic reforms since 1992 which had improve a better working environment for foreign companies and has made it possible for foreign investors to operate in the country in a easy way.
Economic factors
The Indian Government is still trying to improve unfavorable factors like widespread poverty, inadequate physical and social infrastructure, bureaucracy, limited non-agricultural employment opportunities, regulatory and foreign direct investment controls, insufficient access to quality basic and higher education, and the imbalance of rural-to-urban migration..
Socio-Cultural factors
The culture of India poses a great challenge. The mix of traditional tea-drinking population together with the various differences between Muslim and Hindu and the difference between various regions of the country, makes it hard to divide and place is concrete consumer groups. There’s obvious separation in coffee consumption between rural and urban areas having distinctly higher preferences for coffee. “Still the numbers of coffee consumers remain low with slow negative growth figure between 2000 and 2005 - 6.7% and 2.0% respectively.”
Legal factors
The legal environment in India is very different compared to USA or Europe in the eyes of global business. Corruption in the country is very high and it raises a lot of concerns. The company has already experienced some setbacks from the legal environment in India. The case of Starstruck

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